The Woodlands, Texas -- Huntsman Corp. said 13 Nov that it is setting up a joint venture with Sinopec Jinling Co., a subsidiary of Sinopec, with the partners investing $750 million
The JV, Nanjing Jinling Huntsman New Materials Co. Ltd, will build and operate a facility producing 250 kilotonnes-per-annum (ktpa) propylene oxide (PO) and 726 ktpa methyl tertiary butyl ether (MTBE), in Nanjing, China. The facility, expected to be completed by the end of 2014, will use Huntsman's proprietary PO/MTBE technology.
Huntsman describes PO as an intermediate "used to make high value polyurethane materials ranging from energy-efficient home insulation and building materials to comfort foams for automobiles and furniture."
MTBE is a clean-burning fuel additive that improves gasoline engine performance and reduces air pollution.
Huntsman will own 49 percent, and Sinopec 51 percent of the JV.
"This partnership provides a tremendous opportunity for us to further our global expansion and create shareholder value. We are proud to partner with Sinopec, a global leader in energy, refining and chemicals," said Peter Huntsman, president and ceo, in the statement.
Huntsman's Polyurethanes division has world-scale production facilities in the US, the Netherlands and China, including a PO/MTBE plant in Port Neches, Texas and is a global leader in PO technology.